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Interorganizational Relationships, Interorganizational Process Redesign, and E-Integration in the Supply Chain: A Social Exchange and Transaction Cost Perspectives

Authors:
Cheng-Hung Chuang
Shwu-Ming Wu
Ing-Long Wu

Keywords: Supply Chain, E-Integration; Interorganizational Process Redesign; Interorganizational Relationships; Social Exchange Theory; Transaction Cost Economics

Abstract:
Supply chain is complex and dynamic in its inter-firm nature and thus, an Internet-enabled integration for supplies and customers, namely e-integration, is key to its final success. However, although there has been a high adoption rate of e-integration, the level of realized performance is low. Most firms choose to automate only the processes of that firm and its partners in an isolated manner or to automate outdated existing processes between partners. To effectively implement e-integration, interorganizational process redesign (IOPR) is necessary for the processes with both suppliers and customers. The process redesign is here defined as an important mediator for the final e-integration success. Moreover, the nature of the redefined processes is strategically founded on the structure of interorganizational relationships (IOR). Social exchange and transaction cost issues are widely used to define IOR in the supply chain. Based on these concepts, this study thus proposes a research model to examine a firm's e-integration through the mediator of IOPR with both suppliers and customers from the drivers of IOR. The important findings confirm the mediator of process redesign and the drivers of IOR.

Pages: 5 to 11

Copyright: Copyright (c) IARIA, 2014

Publication date: June 22, 2014

Published in: conference

ISSN: 2308-4227

ISBN: 978-1-61208-351-3

Location: Seville, Spain

Dates: from June 22, 2014 to June 26, 2014